When entering the real estate market, buyers often wonder if they are responsible for paying their agent. Traditionally, sellers covered both the buyer’s and seller’s agent commissions, but recent changes in the industry have shifted this dynamic. Buyers must now agree to their agent’s fee in writing before touring homes, and negotiating who covers the buyer’s agent fee is becoming more common. Understanding these changes is crucial for navigating today’s real estate market.
In this Redfin article, we will discuss how buyer’s agents get paid and what buyers should expect in the evolving real estate landscape of today.
How does a buyer’s agent get paid?
Traditionally, sellers paid commissions to both their agent and the buyer’s agent. However, as of August 17, 2024, buyers must agree to their agent’s fee in writing before touring homes. Negotiating the buyer’s agent fee as part of the offer has become more common. Buyers can still request the seller to cover the fee, but it is no longer guaranteed. The final decision depends on negotiations between both parties.
How is Redfin different regarding commissions?
At Redfin, we believe in providing consumers with the best deal possible. Our fees for buyers vary by market and are competitive to give you an edge in making offers.
We offer additional savings for buyers who commit to hiring us after the first tour through our Sign & Save program. By committing before the second tour, we reduce our fee by 0.25%, prioritizing customer service and value.
Can buyers be asked to pay their agent’s commission?
Buyers can be requested to pay their agent’s commission, either partially or in full. Commissions are negotiable, and negotiations between buyers and sellers regarding the buyer’s agent commission are more common now. Buyers can still ask the seller to contribute to or cover the fee, but it depends on the agreed terms.
What to expect as a buyer
As a buyer, be prepared for agent fees to be part of your negotiation. While some sellers may cover the buyer’s agent commission, it is no longer guaranteed. Each transaction varies, so discussing details with your agent is crucial. Working with a knowledgeable real estate agent can help ensure the best outcome for your home purchase.
The NAR settlement primarily applies to MLS listings, with varying rules. Rules for listings not on an MLS also vary by state. Consult your agent for more information.